The S.E.C. Drops Efforts to Recoup Funds From Trump Clemency Recipients

The Securities and Exchange Commission this week dropped civil enforcement cases that could have led to penalties totaling hundreds of millions of dollars against three men who were previously granted clemency by President Trump.

The cases had been brought before Mr. Trump took office this year. Each involved people who later allied themselves with him as they pursued pardons for white-collar frauds that, according to juries in criminal cases, cheated victims out of huge sums.

• Devon Archer, who was convicted in connection with a scheme targeting pension funds and a Native American tribal entity, was ordered to pay nearly $60 million in forfeiture and restitution.

• Trevor Milton was found guilty of lying about the supposed technical achievements of his electric truck maker Nikola. Prosecutors recommended that he pay more than $660 million back to shareholders.

• Carlos Watson, who was convicted of defrauding investors in his digital media company Ozy Media, was assessed penalties of nearly $97 million. All were spared prison time and criminal restitution payments when Mr. Trump granted pardons to Mr. Archer and Mr. Milton and commutations to Mr. Watson and Ozy.

And now, the S.E.C. action means that they will not have to pay any civil penalties, nor will they face restrictions that the commission had sought on their ability to work in securities-related positions.

The dismissals of the civil cases further underscore how Mr. Trump has used the levers of power to help affluent allies who have found themselves crosswise with the federal government he now leads.

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